Jefferies downgrades Australia's Webjet on growing travel demand risks

Web Travel

17/01/2023 22:34

** Jefferies cuts rating on Australia's travel co Webjet Ltd
 WEB.AX  to "underperform" from "hold" as elevated airline
pricing and growing recession concerns pose risks to travel
demand
    ** Capacity additions have materially lagged underlying
demand leading to a more rapid recovery in load factors for
domestic and international air travel recovery benefiting
airlines but rising ticket prices affects non airline sector -
brokerage 
    ** Jefferies says while WEB is well-placed to compete in
business-to-business segment, business-to-consumer is more
challenging given its lack of scale
    ** Brokerage has a price target of A$5.65 on WEB
    ** Nine of 15 analysts rate the stock "buy" or higher, four
"hold" and two "sell" or lower; their median PT is A$6.82 –
Refinitiv data 
    ** WEB stock rose 19.5% in 2022 and is up 6.8% this year as
of last close 
 (Reporting by Udbhav Krishna P)
 ((UdbhavKrishna.P@thomsonreuters.com;))